The Role of Non-Utility Service Providers in Smart Grid Development: Should They Be Regulated, and if so, Who Can Regulate Them?

INTRODUCTION ................................................................................... 532 I. OVERVIEW OF SMART GRID DEVELOPMENT ....................... 533 II. WHY NUSP-CONSUMER INTERACTIONS SHOULD BE REGULATED .............................................................................. 534 A. What are NUSPs and How Do They Interact with Consumers? .......................................................................... 535 B. Cyber Security and Privacy Concerns of NUSP-Consumer Interactions .......................................................................... 538 1. Cyber Security Concerns .............................................. 538 2. Privacy Concerns .......................................................... 543 III. WHAT ENTITY HAS AUTHORITY TO REGULATE NUSPCONSUMER INTERACTIONS? ................................................... 544 A. No Entity has Authority to Regulate NUSP-Consumer Cyber Security Concerns ........................................................ 545 1. The FERC—Partial and Inadequate Regulatory Authority ....................................................................... 545 2. PUCs—No Authority to Regulate ............................... 552 3. The DOE—No Authority to Regulate ........................ 555 4. The FCC—Perhaps Able But Unlikely to Regulate .... 557 5. The DHS—No Authority to Regulate ......................... 558 B. Only PUCs or the FTC’s State Analogues Have Authority to Regulate NUSP-Consumer Privacy Concerns ........................ 559 1. The FERC .................................................................... 559 2. The FCC ...................................................................... 559